The short analytical report focusing on the financial environment for the Cultural and Creative Sectors (CCSs) in EU Member States has been requested to the European Expert Network on Culture (EENC) by the Directorate General for Education and Culture of the European Commission (DG EAC). The request also involved providing a mapping of funding mechanisms and of regulatory incentives for the CCSs across the EU as well as identifying examples of innovative and most effective practices.

This manifesto sets out our 10-point plan to bolster the creative industries, one of the UK’s fastest growing sectors.

Key findings:

The UK creative economy provides jobs for 2.5 million people, more than financial services, advanced manufacturing or construction.

The creative economy is one of the few industrial areas where the UK has a credible claim to be world–leading, but history shows this position of leadership position cannot be taken for granted.

Our 10 recommendations include incentivising experimentation with digital technologies by arts and cultural organisations, developing local creative clusters, adopting our new definitions of the creative industries and economy – which are simple, robust and recognise the central role of digital technologies – and ensuring government funding schemes do not discriminate against creative businesses.

The term ‘two cultures’ was coined more than 50 years ago by scientist and novelist C.P. Snow to describe the divergence in the world views and methods of scientists and the creative sector. This divergence has meant that innovation systems and policies have focussed for decades on science, engineering, technology and medicine and the industries that depend on them. The humanities, arts and social sciences have been bit players at best; their contributions hidden from research agendas, policy and program initiatives, and the public mind.

The CCI Creative City Index (CCI-CCI) is a new approach to the measurement and ranking of creative global cities. It is constructed over eight principal dimensions, each with multiple distinct elements. Some of these dimensions are familiar from other global city indexes, such as the MORI or GaWC indexes, which account for the size of creative industries, the scale of cultural amenities, or the flows of creative people and global connectedness. In addition to these indicators, the CCI-CCI contributes several new dimensions. These measure the demand side of creative participation, the attention economy, user-created content, and the productivity of socially networked consumers.

The creative industries and creative work in other industries have emerged as one of the Australia’s strongest performers, with employment growing by a steady 2.8 per cent a year from 2006 to 2011 – 40 per cent faster than in the economy as a whole – based on the latest Census data. The growth is attributed largely to the digital revolution, and the rising demand for digital and design services across the whole economy.

The global recorded music industry is on a path to recovery, fuelled by licensed digital music services and rapid expansion into new markets internationally. Recorded music is also helping drive a broader digital economy, according this report.